Tata Sons chairman N Chandrasekaran has started the process to shrink the number of subsidiaries of the firm into a manageable number, reported The Economic Times. As per the report, the plan will see the number of subsidiaries, which are currently over a thousand, shrink considerably.
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“The group has more than 1,000 subsidiaries. We don’t need so many… a restructuring of this kind is going on in every large Tata operating company. The number of subsidiaries that we are tackling runs to a dozen in some companies,” a company official was quoted as saying anonymously in the report.
According to the report, the group’s immediate priorities are to stabilize the loss-making Jaguar Land Rover beside figuring out a way forward for weaker businesses, such as aviation and infrastructure. The report further added that an official said that Tata will also look to scale up high growth sectors such as consumer and retail.
As per the official, the group has applied to the Ministry of Corporate Affairs to register a new company to launch its e-commerce business. The process, as per the report, is a work in progress and will take about 12-18 months.
The development comes as N Chandrasekaran is pushing the group to focus on the Indian market based on the belief that the opportunity in India is far greater than what is available abroad.